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The Impact of Subsidy Programs for Solar Thermal Applications: A Case Study for a Remote Island

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  • Wei-Min Lin

    (Department of Accounting Information, Tainan University of Technology, 529 Jhongjheng Rd., Yongkang, Tainan 710, Taiwan)

  • Keh-Chin Chang

    (Energy Research Center, National Cheng Kung University, 2500 Sec. 1, Chung-Cheng S. Rd, Guiren, Tainan 711, Taiwan)

  • Kung-Ming Chung

    (Energy Research Center, National Cheng Kung University, 2500 Sec. 1, Chung-Cheng S. Rd, Guiren, Tainan 711, Taiwan)

Abstract

Government intervention in the form of financial incentives is crucial for translating customer choice into a larger market share for solar thermal applications. The lengthy subsidy programs for solar water heaters in Taiwan have expanded the local market. On a remote island (Kinmen County), the area of solar collectors that are installed per 1000 inhabitants is 192.9 square meters. This study investigates a market-driven mechanism in terms of disposable income, household structure, building type and financial viability. The dual subsidy programs appear to have distorted the local market. The cumulative energy savings for solar water heaters that are installed is misleading because the systems are over-designed and there is a high replacement rate (or shorter service period).

Suggested Citation

  • Wei-Min Lin & Keh-Chin Chang & Kung-Ming Chung, 2019. "The Impact of Subsidy Programs for Solar Thermal Applications: A Case Study for a Remote Island," Energies, MDPI, vol. 12(20), pages 1-11, October.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:20:p:3944-:d:277473
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    References listed on IDEAS

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